Does anyone have any insight on what banks in the central and western part of Massachusetts, or any banks in MA for that matter, who are more open and willing to lending commercial loans for multi families in the 3-5 family range? The ones I am running into are not willing to lend unless its a residential mortgage and if they are willing to do a commercial it is filled with numerous limitations and restrictions that its almost impossible.
@Sean Nad I invest in more of the Southcoast area of MA (southeastern MA) I try to focus on 3-6 unit properties and have had luck with First Citizens Federal Credit Union and Citizens bank believe it or not. Citizens offers a conforming loan with rates at 4.5 last time I had checked (3-4 months ago) first citizens federal was similar. I was shopping around for refinance for a 4 unit I am finishing some renovations on. I have only inquired minimal amount of information at the time as I am not ready to commit yet due to renovation still currently active. Not sure if first citizens federal is stretched out that far in MA but worth a look.
Thanks for the reply. I will give them a call. Did you take our a commercial loan with those banks for a purchase, or was it a refinance? I was amazed with talking to a few banks how they want very little to do with commercial/LLC loans for purchasing multifamilies. Common theme was the place needed to be in pretty good condition, some wanted lead certification right off the bat, prepayment penalities so made challenging to refinance, some counted only 75% of the rental income, fully rented, maybe minor work in an apartment etc...just went on and one. Some flat out said because its an LLC they avoid it and tried to convince me to put it in my name/residential loan....lol, thanks but no thanks. 10 years ago in the bubble, I can only imagine how easy it was...
@Sean Nad I squired the property through a commercial loan at Saint Anne's Credit Union for a 10 year fixed at 4.99 25% down because I was pulling some money from the bank for renovations and then will refinance to a longer fixed rate term and lower, so will be pulling out some money as well and will still be right around the same monthly payment if not a little cheaper. SACU doesn't offer a residential loan for anything that is not owner occupied so I had to go forward with the commercial lending for the acquisition. My personal experience was actually very easy and the funding wasn't an issue, now if my contractor just worked as well I would already be done with this one and on to the next LOL.
Hope this helps!
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